ENTREPRENEURSHIP & SMALL BUSINESS: Types, Impact and Traits Report

This report provides a comprehensive analysis of entrepreneurship and small businesses, covering various types of entrepreneurial ventures such as small business enterprises, scalable start-up entrepreneurship, large company entrepreneurship, and social entrepreneurship. It explores the similari...Read More

ENTREPRENEURSHIP &
SMALL BUSINESS

Table of Contents
INTRODUCTION..............................................................................................................1
TASK 1.............................................................................................................................1
P1 Different types of entrepreneurial ventures and their relation with typology...........1
P2 Similarities and differences between entrepreneurial ventures..............................2
TASK 2.............................................................................................................................4
P3 Relevant data to understand impact of small business on economy......................4
P4 Contribution of small businesses and start ups on social growth...........................5
TASK 3.............................................................................................................................7
P5 Traits and skills of successful entrepreneurs..........................................................7
P6 Aspects of Entrepreneurial Personality...................................................................8
TASK 4.............................................................................................................................8
P7 Ways in which background and experience hinder and foster entrepreneurship....8
CONCLUSION................................................................................................................. 9
REFERENCES...............................................................................................................10

INTRODUCTION
An individual who have different skills and talents and abilities of taking risks to
conduct a business is called as entrepreneur and venture that he is running is
enterprise (Venkataraman and et. al., 2012). Entrepreneur is a person who is
responsible for every decisions and liabilities that are related to operate activities.
Entrepreneurship said to be as a procedure of running a business enterprise by a
person who is called as entrepreneur. With different sort of thought process,
entrepreneur can grab opportunity of gaining competitive advantage. It is a process of
running a small size business firm by an individual who have different idea of producing
goods and services which will aid in making good profit and competitive advantages
(Ács, Autio and Szerb, 2014). This report is analysing numerous range and typologies
of entrepreneurial ventures along with its distinct impact of business businesses over
economy. The report is focusing over the major aspects of mind-set of entrepreneur
understanding the aspects of hinder and foster different environment impact on
entrepreneurship.
TASK 1
P1 Different types of entrepreneurial ventures and their relation with typology
Major focus of every business organisation is on keeping sufficient number of
employees so that all task and activities should be completed in requisite period of time
with full adequacy and efficiency. This action aids achievement of rival's benefits and
higher returns. Here are discussed the major types of entrepreneurship which is
mentioned as below:
Small Business Enterprises: These are short sized firm with less number of
employees and their operations are operated by single human beings who are able in
conducting business activities. There are some examples like carpenters, plumbers,
small retail shop owners etc. These humans are running small ventures in order to fulfil
necessities of themselves and their family members (Shane, 2012). Major purpose of
these kind of small associations are to earn higher profit by serving clients with
extraordinary items.
Scalable Start-Up Entrepreneurship: These firms are grown up as time
passes. When a human being runs these kind of business ventures. When a human
being has this kind of enterprise then he also has option to raise funds from several
investors. Each and every business enterprises needs funds in order to perform their
business activities but on the other hand these sort of associations are having high risk
associated with them that is why every person cannot run scalable start-ups.
Aggressive development firms are a kind of scalable start-up
entrepreneurship. Entrepreneurs are those human beings who put their peerless
thought in activities conduction to produce special sort of products and facilities in order
to gain highest satisfaction for clients towards enterprise's offerings (Bae and et. al.,
2014).
Large Company Entrepreneurship: This term is also defined as corporate
entrepreneurship. Business owners are individuals who take care their business
activities for accomplishing them in appropriate manner. Main attribute of this venture is
to distribute antique products and services which are able in addressing customer
specified needs and wants for ensuring greater market portion in industry. Resource of
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collecting information and knowledge is research program which owner of enterprise
conducts by taking help of an expert person.
Social Entrepreneurship: Major aim of these enterprises is to deliver better
quality products and services in society to improve standard of living of corporation.
Entrepreneurs are suppose to identify all problems and issues that are present in
marketplace and then should provide solutions to those troubles (Baum, Frese and
Baron, 2014).
Typologies of entrepreneurial ventures: This is stated by experts that entire
entrepreneurial ventures are hugely associated with typologies of entrepreneurship.
Hence, here are discussed some of entrepreneur types and typologies:
Types of Entrepreneur
 Serial entrepreneur: These people initiate business with innovative and disruptive
idea for gaining success.
 Social entrepreneur: These individual aims over social betterment and
development.
 Female entrepreneur: Initiate for women empowerment, women are encouraged
to conduct and engage in business activities.
Typologies types
This consist of numerous typologies types which are mentioned as below:
 Lifestyle Ventures: Numerous types of business are initiated for gaining benefits
at market.
 Survival Ventures: As per this, business are initiated for gaining benefits for
family and individual survival. It include micro and macro business like internet
cafe, grocery stores etc.
P2 Similarities and differences between entrepreneurial ventures
Organisation such as small, scalable-start up, large and social are various forms
of enterprises which differs with each other in terms of scope, size and other features.
This is description of points which specifies points which distinguish these firms are
stated beneath:
Objectives: This is concept which describes aim of corporation and distinguish
companies with each other. As all small business venture want to sustain their position
and share in marketplace. Executive execute business activities, so that they are able to
fulfil demands of their family members. They even want to position firm superior than
competitors; through which they retain in marketplace for longer period of time.
Value creation: Organisation require to make improvement in system; through
which entrepreneur is able to establish strong goodwill and brand reputation in
marketplace. By using social affiliation through which firm improve value and image in
market. Besides this, corporation goal is to deliver adequate offerings, as entrepreneur
want to enhance social of people (Schaper and et. al., 2014). For this, small business
manufacture products effectively and deliver quality offerings for customers; so that their
basic aims get accomplish timely. Value creation is a concept with a business firm
begins. It is creation and delivery of value in most efficient and effective manner so that
enterprise could make profit after deducting all sort of costs.
Mindset: This term specifies that every individual posses different characteristics
and thoughts. So, each person will act and behave as per their thinking and knowledge.
As mindset which includes elements such as attitudes, beliefs, values and so on;
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distinguish people from each other. It also specifies that there are two types of
entrepreneur; one manufacture products to serve need and wants of society to enhance
their living standards. While, other are people who want to generate adequate profit for
business (Bosma and et. al., 2012).
Here are discussed major distinction between numerous differences and
similarities which can be mentioned as below:
Diverse sorts of ventures Similarities Differences
Small and social
entrepreneurial
These are organisation
which are set up in small
sized societies. Executive
started these firms to earn
adequate funds, through
which they complete need
and wants of their family
members.
Entrepreneur require to
manufacture innovative
products and utilise
resources efficiently. As
they have to deal with
various complex situations;
which is prime distinction as
per other ventures.
Large and scalable
entrepreneurial
These are firms which have
set outlets in different
nations. So, entrepreneur
has large number of clients
available. For this they
require to manufacture
adequate products and
services; through which
they are able to fulfil
demand of customers.
Executive require to use
adequate tools and
techniques in system, so
that they are able to deliver
appropriate offerings to
people. They require to
design business activities
through which market
position and share
enhances with time. Thus,
entrepreneur is able to
retain in market for longer
period of time (Decker and
et. al., 2014).
Serial & Lifestyle Venture Both of these
entrepreneurial ventures
focus over disrupting
distinct concepts as well as
employer more hard
working and bright worker
to execute the focused plan.
Lifestyle ventures focuso
over emergence of business
despite merging with small
business whereas serial
ventures look for sponsors
and small merger to expand
their business.
Male & Female
Entrepreneurial
Male as well as female
entrepreneur work to reach
standard outcome and
contain equal knowledge as
well as skills.
Female entrepreneur are
time consuming in decision
making in comparison to
male. But these are creative
and male entrepreneur are
more risk taking.
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TASK 2
P3 Relevant data to understand impact of small business on economy
Numerous sort of business organisation function their operations in society as
they directly involve in improvement of economical growth. Entire these can be
considered which are discussed as below:
 Micro Business: These business organisations operate through individual
owner including few number of worker. In United Kingdom, numerous size of
micro organisations are managed or initiated by youngsters and women. Under
this, activities are basically performed by business owner as per their abilities
that deliver both financial support, encouragement and other opportunities to gain
benefits.
 Small-scale Business: Such sort of companies can be defined as those
associations which focus over profit generation and manage survival. According
to this, employee can be 0-500. 90% of business associations are small in size in
United Kingdom according to the economy report. These are the key sources of
employment and economical resources enhancing the living standard of people.
 Medium-sized Business: Numerous companies are categorised in large and
small business. Employee number can extend to 250-500. As business operation
can reduce the employment dearth in country.
Hence, there are numerous types of impact on segregated levels of the economy
of United Kingdom that influence whole trends and decision-making of organisation.
From total population, around 67% human beings are occupied in small and medium
sized associations. Above deep study is showing that small and moderate kind of
enterprises are more beneficial than private entrepreneurial ventures for firm itself and
country as well. Here are mentioned the basic influence of such entities on society at
distinct levels:
Local impact: Numerous local influences are there of small and micro size of
business as this shapes their trends and provide the work opportunities to people. Other
than this, there are several laws and legislations which are made by government have
contribution in enhancing reputation of company at marketplace. Sole proprietorships
increases employment opportunities for those who have eligibility to conduct business
operations in most profitable manner. Govt. takes aid of these kind of association in
enhancing income options for making improvisation in society's living standards
(Drucker, 2014).
Regional impact: Major objective of this kind of enterprises are earning profits
but these ventures are also shaving other areas of serving like enhancement in
employment opportunities along with improvisation in living standards of society people
(Dees, 2017).
National impact: Small scale associations are having prominent share in
country's growth and success. As per a report that was presented in UK stated that
more than 5 million business entities are working their operations at small scale.
Moderate kind of firms have around 85% portion in nation's success element. These
small sized associations are responsible for enhancement in profitability of company as
well as country. These type of ventures are liable for success of country. These
ventures are small in size but are contributing large amount in profitability of nation.
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Thus, in current time, small scale firms are showing rapid and fast growth. Share
of small size firms are having major contribution in nation's economy and overall percent
of share is 6. Approximate turnover of these kind of enterprises are 2.2 trillion which is
similar with privately owned enterprises.
P4 Contribution of small businesses and start ups on social growth
Brexit: This is termed over the situation arrived during UK exits from Britain or
EU nation which combined as 'Brexit'. On the grounds of discussion, on March, 2017,
people were voted as Britisher exit which has become still a debating issue in United
Kingdom. It was a developing element as the new Prime Minister was now negotiating
for breaking the chain.
Distinction between Small-business and Start-ups: Here are mentioned basic
different between small and start-ups i.e. mentioned here:
Small-business Start – ups
 Those companies are initiated with
new concept and focus over earn
livelihood.
 These companies aims over
traditional service to entire their
consumer. They are focused on
providing traditional products to all
their customers.
 It include minimum 0 to 300 worker
overall.
 They are newly started business and
they have chances for achieving
growth in their operations.
 There are focusing on innovative
ideas in order to earn higher market
shares.
 They are having scalable type of
business model
 The business ideas are innovative
thus they are offering customized
products to their customers.
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Illustration 1: Employment in Small Businesses
Source 1: Employment in Small Businesses, 2018
Above data is indicating that growth and success of UK's economy relies upon
contribution of little and medium size enterprises which are running by single
individuals. Here are mentioned some of the major influence due to small and micro
sized business discussed as below:
Employment generation: An entrepreneur require to carry out business
activities through which they deliver adequate products and services in marketplace.
For this, they need sufficient number of workforce to execute operations. So, companies
increase opportunities for people to get employed so that they are able to incur money
for their living (Santos, 2012). This benefit government to eliminate poverty line of
country and maintain living standards of public. Executive uses various tools and
techniques in system so that activities take place effectively and targets are accomplish
within time. But every venture have various differences and similarities which are stated
beneath.
Living Standards of People: Higher rates of employment are a reason behind
improvised living standards of population because hike in income is an only factor of
reducing unemployment. Small size enterprises have good quality products and these
items can be launched by association in international market by taking assistance of
fine and efficient promotion tools.
Social Security improvement & Community Development: Every sort of firm
is having ability of fulfilling needs and wants of customers by conducting business
operations to produce those items which should be able in addressing specific desires
of clients. Society have been render security and increased standard of living that has
influenced their growth and management accordingly. Community developments
comprises some facilities like school, colleges, universities, hospitals etc. so that human
being could learn that how a task should be completed in order to gain higher market
share and lots of attention of numerous people (Fayolle, 2013).
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TASK 3
P5 Traits and skills of successful entrepreneurs
It is required from enterprises to work in peerless manner so that venture could
gain rival's benefits in marketplace. This type of activities aid enhancement of skills and
talents. There are some type of personality traits which should bear by entrepreneur in
order to achieve few benefits which stands proprietors apart from business entities.
Elaboration of these points are discussed below:
Characteristic of Entrepreneur
 Passionate: When a human being is serious about his work then he can do all
kind of task even complex activities in most significant manner by capturing
larger market share. A person who is passionate about his work is able in
working critical situations and is able in addressing some particular and specific
need of clients (Parker, 2018).
 Optimistic: A person who is positive and always sees good points even in
negative situation is an individual with optimistic personality trait. A person who
has capability of finding opportunities in failure is able in running business
operations in critical situations in successful manner (Fisher, 2012).
 Confidence: Individual should have faith in his working so that he could motivate
his workforce for doing hard-work in their task completion so that workers could
attain all targets in limited period of time.
 Thinker: It is a basic trait that should be possessed by entrepreneur in order to
stand apart from rivals in marketplace. A distinct thinker is person who is able in
manufacturing unique products in order to cater specific need of consumers
 Time Management: To hit all goals and objectives in limited period of time, it is
necessary for entrepreneur that he should maintain his time and allocate all task
with suitable time frame (Miller and et. al., 2012).
Skills /Characteristics Entrepreneur Manager
Communication Entrepreneur should be a
good communicator so that
all accurate and adequate
information should spread
among employees to
conduct business activities.
Manager should have better
interaction skills to manage
their objectives and
employee as well.
Decision Making Entrepreneur should be a
good decision maker so that
he could make judgements
related to task completion.
Good decisions bring
profitability and rival's
benefits in association.
Manager need to manage
the decisions of organisation
according to the leader's
judgement so they should
have decisive personality.
Leadership When entrepreneur is having
ability of bringing all
followers and getting done
by taking help of teammates.
Manager should have traits
of a good leader as they
need to manage their worker
accordingly.
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It is a fundamental task of a
chieftain that he should
motivate his workforce.
P6 Aspects of Entrepreneurial Personality
Entrepreneurial personality's importance in improving the economical business
which is crucial as entire practices are organised through company owner. On the
grounds of Big Five Model, one can determine the traits or personality of an
entrepreneur in more creative and significant manner. Here are mentioned the five
determinants of personality of entrepreneur on the basis of that:
Extraversion: This kind of people are highly enthusiastic and energetic in task
conduction and are able in sharing their thoughts with their team members as this is
necessary for operating business activities.
Agreeableness: Entrepreneur should be agree on inspiring his junior
subordinates and should conduct training programs for staff members so that all
activities should be done in most profitable manner.
Conscientiousness: This is a capability of building an cooperative environment
at workplace so that all information and orders could be spread in adequate manner
otherwise it will hamper performance of employee and corporation as well.
Emotional stability: In order to accomplishing of whole work effectively, entrepreneurs
have to be calm as well as concentrate at a time of applying their functions. It will assist in
improving their knowledge and abilities also.
Openness to experience: It shows creativity thinking and innovation as well. In this
entrepreneur have to be open minded which assist in improving the level of business
performance.
TASK 4
P7 Ways in which background and experience hinder and foster entrepreneurship
Individual attributes are influenced in direct or indirect way by their background
and experience. So, person's personality can be enhanced with help of their internal
and external capabilities. This, benefit individual to improve their skills and abilities; so
they are able to evolve as an entrepreneur. School, college, society, friends, family are
various constraints which affect on businessman personal life. These are groups which
taught people manner in which they required to show respect to others (Kirzner, 2015).
Besides this, it also helps owner to behave with customers effectively; and deliver them
adequate products and services in according to clients requirements. Thereby, timely
delivering items and accomplish appropriate amount of profits for business.
For recording and gathering appropriate information, background plays essential
role through which activities are conducted in proper manner. As an example, Richard
Branson is an entrepreneur which has founded company named Virgin Atlantic. This is
person which is connected with small community. As, he was not so qualified and
knowledgable to operate business entity. So, it is essential that individual consists
capabilities through which he is able to handle complex situations and conduct
appropriate business activities. This help Richard to make success and grow business
with time period. This include numerous drawbacks and rewards techniques of
entrepreneurship which is mentioned as below:
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Rewards Drawbacks
 Control - Entrepreneur has whole
control and has to manage
activities accordingly.
 Excitement – entrepreneur are
interested in tier work and
execute new ideas and
opportunities.
 Flexibility - They mange their
working time according to the
ease.
 Freedom – They are entirely
liberal to work and to outline any
decisions.
 Administration – Management of
decision sometime can tend to failure or
negative influence.
 Competition – string competition of
market restrain their growth and
business development opportunities.
 Work schedule – schedule of work is
lengthy and unpredictable which
entrepreneur should understand wisely.
 No regular Pay – There is no certain
wage as they might gain benefits or lose
financial asset which rely over the
operation, trends and environment of
market.
Experience support person to gather and collect know-how information about
relevant conditions. Thereby, make appropriate decisions and generate adequate
revenue from business (Martin, McNally and Kay, 2013).
CONCLUSION
This report can be summarised as entrepreneurship is a process of running a
business enterprise by individual who is defined as entrepreneur. He is a person who
has different personality traits and attributes which makes him distinct from other
business operators. By taking help of entrepreneurial qualities and traits, an individual
can do all his task and actions in most innovative manner even in complex situation
also. Entrepreneur has capabilities of gaining competitive advantage at marketplace.
There are many entrepreneurship like public, private and social. As per report it is clear
that these kind of associations are representing growth in employment opportunities.
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REFERENCES
Books & Journals
Ács, Z. J., Autio, E. and Szerb, L., 2014. National systems of entrepreneurship:
Measurement issues and policy implications. Research Policy. 43(3). pp.476-
494.
Bae, T. J. and et. al., 2014. The relationship between entrepreneurship education and
entrepreneurial intentions: A meta‐analytic review. Entrepreneurship theory and
practice. 38(2). pp.217-254.
Baum, J. R., Frese, M. and Baron, R. A., 2014. Born to be an entrepreneur? Revisiting
the personality approach to entrepreneurship. In The psychology of
entrepreneurship. (pp. 73-98). Psychology Press.
Bosma, N. and et. al., 2012. Entrepreneurship and role models. Journal of Economic
Psychology. 33(2). pp.410-424.
Brenkert, G. G., 2017. Entrepreneurship, ethics, and the good society.
In Entrepreneurship. (pp. 85-128). Routledge.
Decker, R. and et. al., 2014. The role of entrepreneurship in US job creation and
economic dynamism. Journal of Economic Perspectives. 28(3). pp.3-24.
Dees, J. G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability. (pp. 34-42). Routledge.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fayolle, A., 2013. Personal views on the future of entrepreneurship
education. Entrepreneurship & Regional Development. 25(7-8). pp.692-701.
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emerging theories in entrepreneurship research. Entrepreneurship theory and
practice. 36(5). pp.1019-1051.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Martin, B. C., McNally, J. J. and Kay, M. J., 2013. Examining the formation of human
capital in entrepreneurship: A meta-analysis of entrepreneurship education
outcomes. Journal of Business Venturing. 28(2). pp.211-224.
Miller, T. L. and et. al., 2012. Venturing for others with heart and head: How
compassion encourages social entrepreneurship. Academy of management
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Parker, S. C., 2018. The economics of entrepreneurship. Cambridge University Press.
Santos, F. M., 2012. A positive theory of social entrepreneurship. Journal of business
ethics. 111(3). pp.335-351.
Schaper, M. T. and et. al., 2014. Entrepreneurship and small business.
Shane, S., 2012. Reflections on the 2010 AMR decade award: Delivering on the
promise of entrepreneurship as a field of research. Academy of Management
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Venkataraman, S. and et. al., 2012. Reflections on the 2010 AMR decade award:
Whither the promise? Moving forward with entrepreneurship as a science of the
artificial. Academy of Management Review. 37(1). pp.21-33.
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